Notes to Accounts of A Infrastructure Ltd.

1. During the year, there is no change in Authorized Share Capital of
Preference Shares & Equity Shares of the Company.

2. During the year, there is no change in issued. Subscribed and paid
up Preference Share Capital and Equity Share Capital.

3. The Company has only one class of equity shares having at par value
of Rs. 10 per share. Each Shareholder is eligible for one vote per
share. The dividend proposed by the Board of Directors is subject to
the approval of share- holders, except in case of interim dividend. In
the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company, after distribution of all
preferential amounts, in proportion of their shareholding.

Nature of security and terms of repayment for Long Term
Secured/Unsecured Borrowings:

4. Nature of Security

All term loan Secured by way of first charge on fixed assets of the
company to consortium banks and second charge ranking pan-passu on all
present and future inventories and book-debts and other current assets
and personal guarantees of two Directors of the company.

c) Corporate guarantee given to bank aggregating Rs.1075 lacs in
respect of working capital facilities granted to other body corporate.

Note 7.

Municipal Corporation, Ahmadabad had demanded octroi @ 4% in place of @
2.25% on imported mineral fibre while clearance of first consignment
after imposition of octroi, against which Company has filed civil suit.
The Company has deposited the demand under protest. For subsequent
clearances, Municipal Corporation had accepted octroi @2.25%.

Note 8.

In earlier years, Company had provided Property Tax liability in the
books amounting to Rs. 45.20 lacs as per demand I raised by Ranip Nagar
Palika. However, Company has filed Legal suit with Tribunal of the
Municipal Corporation, Ahmadabad. I The same is still pending.

Note 9.

Based on assessment about the current value of similar assets as per
valuation report submitted by the value appointed for the purpose, the
Company had valued Plant & Machinery & other Fixed Assets as on 1st
April, 2002. Full amount of Depreciation on the amount added on account
of revaluation of Fixed Assets, had been charged to Profit and Loss
Account instead of equal amount being transferred from Revaluation
Reserve Account up to Financial Year 2004-05. However, from the
Financial Year 2005-06, the depreciation on the amount added on account
of revaluation of Fixed Assets has been charged to Revaluation Reserve
Account. This has resulted into lower profit for the year by Rs. NIL
(Cumulative Rs.803.97 lacs)

Note 10. - Related Party Disclosure

A) Transactions with related Parties

SJJa DISCLOSURE RELATED PERSON

A. Name of the Related persons - Director s Shri Sanjay Kumar Kanoria

B. Relatives of Directors Smt. Priyadarshini Kanoria

Shri B. K. Kanoria

C. Name of the Related Enterprises in Kanoria Sugar & General Mfg. Co.
Ltd. which Directors are interested Reliance Steel Limited

B.S.Traders Pvt. Limited

Landmark Dealers Pvt. Limited

Ekta Tie-Up Pvt. Limited

Aakruti Investment Limited 1

Satyatej Investment & Fin. Pvt. Limited

Indira Buildcon Pvt. Ltd.

Tarouni Const. & Fin. Pvt. Ltd.

Anchal Fintrade Pvt. Ltd.

Ganga Projects Pvt. Ltd.

Lalit Polymers and Electronics Ltd.

Chiraj Stock & Securities Pvt.Ltd.

Vishvjyoti Trading Co. Ltd. I

Pranjal Investment Pvt.Ltd.

Chirag Fiscal Services Pvt. Ltd.

S.K.Kanoria (HUF)

Note 11.

Balances of Sundry debtors and creditors are subject to confirmation,

Note 12. - Micro, Small & Medium Scale business entities

There are Micro, Small and Medium Enterprises, to whom the Company owes
dues, which are outstanding for more than 45 days as at 31st March,
2013. This information is required to be disclosed under the Micro,
Small and Medium Enter- prises Development Act, 2006, and have been
determined to the extent such parties have been identified on the basis
of information available with the Company. The outstanding dues are
amounting to Rs 0.19 lacs to the following parties:

M/s Gilt Pack Ltd., Indore

M/s Hari Industries, Jaipur

M/s Shiv Shakti Industrial Corpn., Jaipur

M/s Shri Krishna Ind., Jaipur

M/s Agarwai Industries, Jaipur

M/s Sievetech India Pvt. Ltd., Jaipur Note 41

The Company has entered into License Agreement with Gujarat Composite
Limited on 07.04.2005 for running their unit for manufacturing of AC
Sheet and Cement manufacturing units at Digvijaynagar, Ranip, Ahmadabad
for a period of 84 month on license basis, extendable to further period
of 84 months on mutual consent.

Income accrued from operations of manufacturing units taken on lease
from Gujarat Composite Ltd. Shown as other operating income.

As per the License Agreement upon expiry of license period, the Gujarat
Composite Ltd. (Licensor) Would be under obligation to take over all
the current assets of A Infrastructure Ltd. (Licensee) pertaining to or
in connection with the operation of AC Sheet and Cement manufacturing
units at their book value and make the payment if any for this to the
Licensee forthwith. Further, after expiry of the license period or the
extended period, the Licensee shall vacate and handover the possession
of AC Sheet and Cement manufacturing units to the Licensor upon receipt
of payment if any due to be received from the Licensor under this
agreement.

The Licensor has failed to pay the dues to the Licensee as per the
License Agreement signed by the Licensor with Licensee in spite of
notices being served to Licensor. Further, based on application dated
23.05.12 filed by Labour Union viz Gujarat Mazdoor Panchayat ,The
Hon'ble Industrial Tribunal Ahmedabad, has directed vide its order
dated 07.06.2012 to A Infrastructure Ltd. to run the Production
activities & continue to pay wages, in the same manner to all those
workers who

*No Instrument has been issued which is likely to dilute the earnings
per share.

Note 13

Current tax represents MAT.

Note 14.

Consequent to the Notification under the Company's Act, 1956; the
Financial Statements for the year ended on 31st March 2013 are prepared
under the Revised Schedule VI. Accordingly, the previous year figures
have also been reclassified to confirm this year's classifications.

are employed and utilized by A Infrastructure Ltd for the production
activities at the factory situated at Digvijay Nagar, Ranip, Ahmadabad
provided that no hindrance, obstructions and the like is caused by M/s
Gujarat Composite Limited and/ or other authorities.

Note 15.

The Company has entered into license agreement with Chirag Fiscal
Services Private Limited w.e.f. 01.01.2009 for running j their unit for
manufacturing of AC Pipes at Kanyakheri, Bhilwara for a period of 36
months. The license agreement has been extended ud to 31.12.2013 bv
suDDlementarv aareement.

Mar 31, 2012

1. During the year, the Authorized Share Capital of Preference shares
of the company has been increased to Rs.1100 lakhs (Previous year
Rs.100 lakhs) consisting of 11,00,000(previous year 1,00,000)
Preference shares of Rs.100 each.

2. During the year, there is no change in issued, subscribed and paid
up Preference Share Capital and Equity Share Capital.

3. The Company has only one class of equity shares having a par value
of Rs. 10 per share. Each Shareholder is eligible for one vote per
share. The dividend proposed by the Board of Directors is subject to
the approval of shareholders, except in case of interim dividend. In
the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company, after distribution of all
preferential amounts, in proportion of their shareholding.

4. Nature of Security

All term loan Secured by way of first charge on fixed assets of the
company to consortium banks and second charge ranking pari-passu on all
present and future inventories and book-debts and other current assets
and personal guarantees of two Directors of the company. Vehicle loans
are secured by hypothecation of Vehicles.

5. Terms of Repayment

Term loan amounting to Rs.3,190.00 lacs repayable in 24 equal quarterly
installments and Term loan amounting to Rs. 175.00 lacs repayable in 17
equal quarterly installments. Vehicle loans are repayable over a
period of 1 to 5 years.

c) Corporate guarantee given to bank aggregating Rs.1175.00 lacs in
respect of working capital facilities granted to other body corporate.

Note 7.

Municipal Corporation, Ahmadabad had demanded octroi @ 4% in place of @
2.25% on imported mineral fiber while clearance of first consignment
after imposition of octroi. Against which company has filed civil suit.
The Company has deposited the demand under protest. For subsequent
clearances, Municipal Corporation had accepted octroi @2.25%.

Note 8.

In earlier years, Company had provided Property Tax liability in the
books amounting to Rs. 45.20 lacs as per demand raised by Ranip Nagar
Palika. However Company has filed Legal suit with tribunal of the
Municipal Corporation, Ahmadabad. The same is still pending.

Note 9.

Worker union had filed a case at labour court for recovery against
uniform & shoes. Amount for the same has not been ascertained. The
company is contesting the case.

Note 10.

Based on assessment about the current value of similar assets as per
valuation report submitted by the valuer appointed for the purpose, the
company has valued Plant & Machinery & other Fixed Assets as on 1 st
April, 2002. Full amount of Depreciation on the amount added on
revaluation of Fixed Assets, have been charged to profit and loss
account instead of equal amount transferring from Revaluation Account
up to financial year 2004-05. However, from the year 2005-06, the
depreciation on the amount added on revaluation of fixed assets has
been charged to revaluation reserve amount. This has resulted into
lower profit for the year by Rs. NIL (Cumulative Rs.642.45 lacs)

The estimates of future salary increase considered in actuarial
valuation has been made after taking into account the inflation,
seniority, promotions and other relevant factors on long term basis.

Note 11.

The Company is engaged in the business of manufacturing and laying &
jointing of Asbestos Cement Products, which as per Accounting Standard
-17 and in the opinion of the management, is considered to be the only
reportable business segment. The geographical segmentation is not
relevant as there were no exports.

C. Name of the Related Enterprises in Kanoria Sugar & General Mfg. Co.
Ltd. which Directors are interested Reliance Steel Limited

B.S.Traders Pvt. Limited

Landmark Dealers Pvt. Limited

Ekta Tie-Up Pvt. Limited

Aakruti Investment Limited

Satyatej Investment & Fin. Pvt. Limited

Indira Buildcon Pvt. Ltd.

Tarouni Const. & Fin. Pvt. Ltd.

Anchal Fintrade Pvt. Ltd.

Ganga Projects Pvt. Ltd.

Lalit Polymers and Electronics Ltd.

Chiraj Stock & Securities Pvt.Ltd.

Note 13.

Balances of Sundry debtors and creditors are subject to confirmation.

Note 14. - Micro, Small & Medium Scale business entities

There are Micro, Small and Medium Enterprises, to whom the Company owes
dues, which are outstanding for more than 45 days as at 31st March,
2012. This information is required to be disclosed under the Micro,
Small and Medium Enterprises Development Act, 2006, and have been
determined to the extent such parties have been identified on the basis
of information available with the Company. The outstanding dues are
amounting to Rs.0.19 lacs to the following parties

M/s Gilt Pack Ltd., Indore

M/s Hari Industries, Jaipur

M/s Shiv Shakti Industrial Corpn., Jaipur

M/s Shri Krishna Ind., Jaipur

M/s Agarwal Industries, Jaipur

M/s Sievetech India Pvt. Ltd., Jaipur

Note 15.

The Company has entered into License Agreement with Gujarat Composite
Limited (GCL) on 07.04.2005 for running their unit for manufacturing of
AC Sheet and Cement manufacturing units at Digvijaynagar, Ranip,
Ahmadabad for a period of 84 months on license basis, extendable to
further period of 84 months on mutual consent.

Income accrued from operations of manufacturing units taken on lease
from GCL shown as other operating income.

As per the License Agreement, on expiry of license period, the GCL
(Licensor) would be under obligation to take over all the current
assets of A Infrastructure Ltd. (Licensee) pertaining to or in
connection with the operation of AC Sheet and Cement manufacturing
units at their book value and make the payment if any for this to the
Licensee forthwith. Further, after expiry of the license period or the
extended period, the Licensee shall vacate and handover the possession
of AC Sheet and Cement manufacturing units to the Licensor upon receipt
of payment if any due to be received from the Licensor under this
agreement.

Since the Licensor has failed to pay dues to the Licensee as per the
License Agreement signed by the Licensor with Licensee in spite of
notices served to Licensor. Further Based on application dated 23.05.12
filed by Labour Union viz Gujarat Mazdoor Panchayat ,The Hon'ble
Industrial Tribunal Ahmadabad, has directed vide its order dated
07.06.2012 to A Infrastructure Ltd to run the Production activities &
continue to pay wages, in the same manner to all those workers who are
employed and utilized by A Infrastructure Ltd for the production
activities at the factory situated at Digvijay Nagar ,Ranip, Ahmadabad
provided that no hindrance, obstructions and the like is caused by M/s
Gujarat Composite Limited and/or other authorities.

Note 16.

The Company has entered into license agreement with Chirag Fiscal
Services Private Limited w.e.f. 01.01.2009 for running their unit for
manufacturing of AC Pipes at Kanyakheri, Bhilwara for a period of 36
months. The license agreement has been extended up to 31.12.2013 by
supplementary agreement.